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IFAs told to emulate Hargreaves Lansdown by Ascentric

Wrap provider Ascentric has told IFAs that the Hargreaves Lansdown model is effectively a wrap model and one that they should seek to emulate. It says the wrap market has the potential to reach £1800bn.

Ascentric managing director Hugo Thorman says: “IFAs who do not adopt wraps and provide their clients with the corresponding high levels of service, risk losing them to those IFAs such as Hargreaves Lansdown who have their
own wrap service offered direct to their clients.”

Thorman says that the HL’s Vantage wrap service accounts for the vast majority of the firm’s £8.3bn of assets under management, £24m annual profits and PE of about 38 which he describes as “all very impressive numbers”.

He says: “What is interesting is that the present value of future earnings of such a business is supported by impressive past and prospective growth?

And even more impressive is the quality of those earnings with 67 per cent recurring income and client loyalty levels beyond anything that former models have ever been close to achieving.”

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